Credit Card Surcharges
January 15, 2013 12:20 PM
The media is abuzz with news about changes to the rules of credit card surcharges (also known as a checkout fee). This can be confusing and alarming so we want to set the record straight.
There are two very important things to know about this charge:
1) This new fee does NOT apply to debit cards or prepaid cards. Whether you run your NVB Debit Card as a credit or debit, it is still a "debit card", which does not qualify for this new fee.
2) The merchant/business MUST disclose the surcharge credit card fee to customer prior to checkout, at checkout, and on receipts. If you see this disclosure, consider paying with your debit card instead.
A settlement was reached last summer between credit card companies and merchants which will allow merchants to charge an additional fee to certain credit card transactions, beginning January 27, 2013. This surcharge will not be allowed in the following 10 states which have existing state laws to restrict surcharges: California, Colorado, Connecticut, Florida, Kansas, Maine, Massachusetts, New York, Oklahoma, and Texas.
Merchants (including online merchants) who choose to surcharge will be required to:
Post a notice at point-of-entry (such as at the storefront);
Post a notice at point-of-sale (at the checkout); and
Disclose the fee on all receipts.
This fee is only applicable for credit cards. Debit cards and prepaid cards cannot be assessed this fee.
Merchants are capped with a maximum amount that can be surcharged on each transaction (maximums are set for each individual merchant and will never exceed 4%).